https://tests.bitcoin.it/w/index.php?title=Fidelity_bonds&feed=atom&action=historyFidelity bonds - Revision history2024-03-29T12:40:34ZRevision history for this page on the wikiMediaWiki 1.30.0https://tests.bitcoin.it/w/index.php?title=Fidelity_bonds&diff=69204&oldid=prevKristapsk: Add info about mainnet use of fidelity bonds in JoinMarket2022-02-18T09:30:52Z<p>Add info about mainnet use of fidelity bonds in JoinMarket</p>
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<td colspan="2" style="background-color: white; color:black; text-align: center;">Revision as of 09:30, 18 February 2022</td>
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<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The lock-time can be chosen to be far enough in the future to provide a suitable cost. Note that from the point of view of an investor of many bitcoins, they can purchase bonds for nearly-free because they intend to hold their bitcoins for a very long time anyway. Although presumably a long-term bitcoin investor won't want to DOS coinjoin protocols that make bitcoin more private and fungible, as that would hurt the value of their own investment coins.</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The lock-time can be chosen to be far enough in the future to provide a suitable cost. Note that from the point of view of an investor of many bitcoins, they can purchase bonds for nearly-free because they intend to hold their bitcoins for a very long time anyway. Although presumably a long-term bitcoin investor won't want to DOS coinjoin protocols that make bitcoin more private and fungible, as that would hurt the value of their own investment coins.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Time-Locked fidelity bonds are currently used in mainnet in [[JoinMarket]].</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== See also ==</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== See also ==</div></td></tr>
</table>Kristapskhttps://tests.bitcoin.it/w/index.php?title=Fidelity_bonds&diff=67959&oldid=prevFurunodo: ref description: gmaxwell on Bitcointalk: Creating Bitcoin passports using sacrifices, February 2nd 20132020-06-17T21:30:37Z<p>ref description: gmaxwell on Bitcointalk: Creating Bitcoin passports using sacrifices, February 2nd 2013</p>
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<td colspan="2" style="background-color: white; color:black; text-align: center;">Revision as of 21:30, 17 June 2020</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l13" >Line 13:</td>
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<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>=== Single/Consecutive Block Sacrifices ===</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>=== Single/Consecutive Block Sacrifices ===</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>The sacrifice can be done with transactions that pay abnormally high fees, either single such transactions, or groups of multiple ones in a row, latter intended to prevent miners themselves from creating the sacrifices and mining them in their own blocks. Problems with consecutive transaction sacrifices include the potential for gaps, as well as the large size of the proofs of the sacrifices.<ref>[https://bitcointalk.org/index.php?topic=140711.msg1498806#msg1498806]</ref></div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>The sacrifice can be done with transactions that pay abnormally high fees, either single such transactions, or groups of multiple ones in a row, latter intended to prevent miners themselves from creating the sacrifices and mining them in their own blocks. Problems with consecutive transaction sacrifices include the potential for gaps, as well as the large size of the proofs of the sacrifices.<ref>[https://bitcointalk.org/index.php?topic=140711.msg1498806#msg1498806 <ins class="diffchange diffchange-inline">gmaxwell on Bitcointalk: Creating Bitcoin passports using sacrifices, February 2nd 2013</ins>]</ref></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>=== Announce/Commit Sacrifices ===</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>=== Announce/Commit Sacrifices ===</div></td></tr>
</table>Furunodohttps://tests.bitcoin.it/w/index.php?title=Fidelity_bonds&diff=67958&oldid=prevFurunodo: formatting, links, etc2020-06-17T21:28:46Z<p>formatting, links, etc</p>
<table class="diff diff-contentalign-left" data-mw="interface">
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<td colspan="2" style="background-color: white; color:black; text-align: center;">Revision as of 21:28, 17 June 2020</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l1" >Line 1:</td>
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<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>A fidelity bond is a proposed mechanism where Bitcoins are deliberately sacrificed to make a cryptographic identity expensive to obtain. The sacrifice is done in a way that can be proven to a third party. By making the identity expensive it can be trusted not to commit unwanted acts, such as spamming message boards, or committing fraud, because upon detection of the unwanted acts the identity becomes useless, requiring the owner of the identity to purchase another one.</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>A <ins class="diffchange diffchange-inline">'''</ins>fidelity bond<ins class="diffchange diffchange-inline">''' </ins>is a proposed mechanism where Bitcoins are deliberately sacrificed to make a cryptographic identity expensive to obtain. The sacrifice is done in a way that can be proven to a third party. By making the identity expensive it can be trusted not to commit unwanted acts, such as spamming message boards, or committing fraud, because upon detection of the unwanted acts the identity becomes useless, requiring the owner of the identity to purchase another one.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Mechanism ==</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Mechanism ==</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The core of the fidelity bond is the sacrifice - the mechanism by which Bitcoins are provably taken from their original owner. The Bitcoins may be given to someone else or destroyed, but regardless it must not be possible for their original owner to regain control of them.</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The core of the fidelity bond is the sacrifice - the mechanism by which Bitcoins are provably taken from their original owner. The Bitcoins may be given to someone else or destroyed, but regardless it must not be possible for their original owner to regain control of them.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>An effective form of sacrifice is to simply create a transaction assigning the coins to an unspendable output, either an address known to not have a corresponding secret key, or to a scriptPubKey that is [[Script#Provably_Unspendable.2FPrunable_Outputs|provably unspendable]]. The Bitcoins are removed from circulation forever, a criticism of this mechanism.</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>An effective form of sacrifice is to simply create a transaction assigning the coins to an unspendable output, either an address known to not have a corresponding secret key, or to a <ins class="diffchange diffchange-inline"><tt></ins>scriptPubKey<ins class="diffchange diffchange-inline"></tt> </ins>that is [[Script#Provably_Unspendable.2FPrunable_Outputs|provably unspendable]]. The Bitcoins are removed from circulation forever, a criticism of this mechanism.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The Bitcoins can also be donated to a third party, such as a charity, however such donations can be controversial, allow the charity itself (or anyone with access to their funds) to purchase bonds at little or no cost, pose the problem of verifying the bonds validity in the future should the chosen charity(s) change, and finally, pose the problem of coming to a consensus on the charities themselves.</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The Bitcoins can also be donated to a third party, such as a charity, however such donations can be controversial, allow the charity itself (or anyone with access to their funds) to purchase bonds at little or no cost, pose the problem of verifying the bonds validity in the future should the chosen charity(s) change, and finally, pose the problem of coming to a consensus on the charities themselves.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>In the context of Bitcoin, miners have been proposed as a third party whom any Bitcoin user can agree should receive funds, as miners act to secure the network from attack for everyone. The value is sacrificed to miners in the form of transaction fees.</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>In the context of Bitcoin, miners have been proposed as a third party whom any Bitcoin user can agree should receive funds, as miners act to secure the network from attack for everyone. The value is sacrificed to miners in the form of <ins class="diffchange diffchange-inline">[[Miner fees|</ins>transaction fees<ins class="diffchange diffchange-inline">]]</ins>.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>=== Single/Consecutive Block Sacrifices ===</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>=== Single/Consecutive Block Sacrifices ===</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>=== Announce/Commit Sacrifices ===</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>=== Announce/Commit Sacrifices ===</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>To ensure that the miner collecting the sacrificed Bitcoin is picked at random the announce/commit sacrifice was proposed.<ref>[https://bitcointalk.org/index.php?topic=134827.0 Purchasing fidelity bonds by provably throwing away bitcoins]</ref> First a sacrifice transaction is prepared that either sacrifices value to transaction fees, or spends coins to an [[Script#Anyone-Can-Spend_Outputs|Anyone-Can-Spend Output]]. With [[nLockTime]] the transaction is made invalid until some time in the future.</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>To ensure that the miner collecting the sacrificed Bitcoin is picked at random the announce/commit sacrifice was proposed.<ref>[https://bitcointalk.org/index.php?topic=134827.0 Purchasing fidelity bonds by provably throwing away bitcoins]</ref> First a sacrifice transaction is prepared that either sacrifices value to transaction fees, or spends coins to an [[Script#Anyone-Can-Spend_Outputs|Anyone-Can-Spend Output]]. With <ins class="diffchange diffchange-inline"><tt></ins>[[nLockTime]]<ins class="diffchange diffchange-inline"></tt> </ins>the transaction is made invalid until some time in the future.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The second step is the announcement. The transaction is enclosed in another transaction as data, for instance by using a [[Script#Provably_Unspendable.2FPrunable_Outputs|prunable output]]. The announcement is then broadcast and is included in the blockchain, proving that anyone could have seen the inner transaction prior to it becoming valid.</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The second step is the announcement. The transaction is enclosed in another transaction as data, for instance by using a [[Script#Provably_Unspendable.2FPrunable_Outputs|prunable output]]. The announcement is then broadcast and is included in the blockchain, proving that anyone could have seen the inner transaction prior to it becoming valid.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Finally the inner transaction becomes valid when the <del class="diffchange diffchange-inline">[[</del>nLockTime<del class="diffchange diffchange-inline">]] </del>is reached. Because mining is a random process, any miner can collect the value sacrified, and the purchaser of the fidelity bond has no control over where that value goes.</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Finally the inner transaction becomes valid when the <ins class="diffchange diffchange-inline"><tt></ins>nLockTime<ins class="diffchange diffchange-inline"></tt> </ins>is reached. Because mining is a random process, any miner can collect the value sacrified, and the purchaser of the fidelity bond has no control over where that value goes.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The proof of the sacrifice is then two transactions: the proof the announcement transaction exists in the chain, and the proof that the inner sacrifice exists in the chain. (possibly with proof of the inner sacrifice inputs to prove what fees were actually paid)</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The proof of the sacrifice is then two transactions: the proof the announcement transaction exists in the chain, and the proof that the inner sacrifice exists in the chain. (possibly with proof of the inner sacrifice inputs to prove what fees were actually paid)</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>=== Coinbase TxOut Sacrifices ===</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>=== Coinbase <ins class="diffchange diffchange-inline"><tt></ins>TxOut<ins class="diffchange diffchange-inline"></tt> </ins>Sacrifices ===</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Coinbase transactions are unique in that they can't be spent for 100 blocks, thus solving the problem of proving a transaction output was made public prior to it being possible to spend that output in a single transaction. In addition coinbase transactions can be created anonymously without linking the transaction to any other transaction provided that the creator has the ability to mine anonymously. (<del class="diffchange diffchange-inline">or </del>have someone else do so on their behalf)</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins class="diffchange diffchange-inline">[[</ins>Coinbase<ins class="diffchange diffchange-inline">]] </ins>transactions are unique in that they can't be spent for 100 blocks, thus solving the problem of proving a transaction output was made public prior to it being possible to spend that output in a single transaction. In addition coinbase transactions can be created anonymously without linking the transaction to any other transaction provided that the creator has the ability to mine anonymously. (<ins class="diffchange diffchange-inline">Or </ins>have someone else do so on their behalf<ins class="diffchange diffchange-inline">.</ins>)</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>A proof for a coinbase txout is particularly short if the txout is the last txout and the script is meant to be unspendable. SHA256 midstate compression can then be used to prove the committed digest, and that the last opcode was OP_RETURN; it is not possible for a script to return true unless without the last opcode being executed. Fortunately the anyone-can-spend version can-not be proven so easily - consider the following txout fragment:</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>A proof for a coinbase <ins class="diffchange diffchange-inline">[[Protocol_documentation#tx|</ins>txout<ins class="diffchange diffchange-inline">]] </ins>is particularly short if the txout is the last txout and the script is meant to be unspendable. SHA256 midstate compression can then be used to prove the committed digest, and that the last opcode was <ins class="diffchange diffchange-inline"><tt></ins>OP_RETURN<ins class="diffchange diffchange-inline"></tt></ins>; it is not possible for a script to return true unless without the last opcode being executed. Fortunately the anyone-can-spend version can-not be proven so easily - consider the following txout fragment:</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>  <SHA256 midstate> <scriptPubKey length> <digest> <nLockTime></div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>  <SHA256 midstate> <scriptPubKey length> <digest> <nLockTime></div></td></tr>
<tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l41" >Line 41:</td>
<td colspan="2" class="diff-lineno">Line 41:</td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Passports ==</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Passports ==</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>This wiki combats spam, while still allowing for users to sign up anonymously, by requiring users to pay a small amount of Bitcoins to the wiki before editing privileges are granted. Creating large numbers of "sock-puppets" to add spam content to articles is thus made expensive. The fee approach can be generalized with the concept of a Passport, first proposed by Mike Hearn,<ref>[https://bitcointalk.org/index.php?topic=140711.0 Creating Bitcoin passports using sacrifices]</ref> tied to the users identity. Wikis, forums, webmail and other services can then create blacklists of users who violate the rules of the services, with those blacklists tied to passports.</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins class="diffchange diffchange-inline">[[Bitcoin Wiki:About|</ins>This wiki<ins class="diffchange diffchange-inline">]] </ins>combats spam, while still allowing for users to sign up anonymously, by requiring users to pay a small amount of Bitcoins to the wiki before editing privileges are granted. Creating large numbers of "sock-puppets" to add spam content to articles is thus made expensive. The fee approach can be generalized with the concept of a Passport, first proposed by Mike Hearn,<ref>[https://bitcointalk.org/index.php?topic=140711.0 Creating Bitcoin passports using sacrifices]</ref> tied to the users identity. Wikis, forums, webmail and other services can then create blacklists of users who violate the rules of the services, with those blacklists tied to passports.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The advantage of fidelity bonds in that application over simply charging fees is re-usability of an identity across multiple services, as well as the neutrality: if the value required to create the passport provably does not go to the person adding the passport to a blacklist, there is no incentive to do so to collect new sign-up fees.</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The advantage of fidelity bonds in that application over simply charging fees is re-usability of an identity across multiple services, as well as the neutrality: if the value required to create the passport provably does not go to the person adding the passport to a blacklist, there is no incentive to do so to collect new sign-up fees.</div></td></tr>
<tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l51" >Line 51:</td>
<td colspan="2" class="diff-lineno">Line 51:</td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Time-Locked Fidelity Bond ==</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Time-Locked Fidelity Bond ==</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>A related concept which uses time-locked bitcoins to prove a sacrifice. The purchaser of the fidelity bond sends bitcoins to a time-locked address and can reveal the UTXO and redeemScript to prove the sacrifice. The thing being sacrificed here is time rather than money (although because of the time-value-of-money they are somewhat related). This idea may be particularly useful for creating a cost to deliberately DOS interactive protocols like [[CoinJoin<del class="diffchange diffchange-inline">|coinjoin</del>]] or <del class="diffchange diffchange-inline">coinswap</del>.</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>A related concept which uses time-locked bitcoins to prove a sacrifice. The purchaser of the fidelity bond sends bitcoins to a time-locked address and can reveal the UTXO and <ins class="diffchange diffchange-inline"><tt></ins>redeemScript<ins class="diffchange diffchange-inline"></tt> </ins>to prove the sacrifice. The thing being sacrificed here is time rather than money (although because of the time-value-of-money they are somewhat related). This idea may be particularly useful for creating a cost to deliberately DOS interactive protocols like [[CoinJoin]] or <ins class="diffchange diffchange-inline">[[CoinSwap]]</ins>.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The lock-time can be chosen to be far enough in the future to provide a suitable cost. Note that from the point of view of an investor of many bitcoins, they can purchase bonds for nearly-free because they intend to hold their bitcoins for a very long time anyway. Although presumably a long-term bitcoin investor won't want to DOS coinjoin protocols that make bitcoin more private and fungible, as that would hurt the value of their own investment coins.</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The lock-time can be chosen to be far enough in the future to provide a suitable cost. Note that from the point of view of an investor of many bitcoins, they can purchase bonds for nearly-free because they intend to hold their bitcoins for a very long time anyway. Although presumably a long-term bitcoin investor won't want to DOS coinjoin protocols that make bitcoin more private and fungible, as that would hurt the value of their own investment coins.</div></td></tr>
</table>Furunodohttps://tests.bitcoin.it/w/index.php?title=Fidelity_bonds&diff=64882&oldid=prevBelcher: /* Temporary Fidelity Bond */ Renamed concept and section2018-01-26T15:00:48Z<p><span dir="auto"><span class="autocomment">Temporary Fidelity Bond: </span> Renamed concept and section</span></p>
<table class="diff diff-contentalign-left" data-mw="interface">
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<td colspan="2" style="background-color: white; color:black; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: white; color:black; text-align: center;">Revision as of 15:00, 26 January 2018</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l49" >Line 49:</td>
<td colspan="2" class="diff-lineno">Line 49:</td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>Fidelity bonds can be used to make financial fraud unprofitable. For instance the original fidelity bond proposal<ref>[http://sourceforge.net/mailarchive/message.php?msg_id=29185108 Trusted identities]</ref> - called "Trusted identities" at that time - included the idea of using fidelity bonds to create decentralized [[Green address|green addresses]]. Someone wishing for their transactions to be accepted without confirmations would first purchase a fidelity bond of some value tied to their identity. Someone determining if they should accept a payment without confirmations can check that the bond was sufficiently expensive to make it unprofitable for the sender to commit fraud. If the sender does commit fraud by double-spending the payment, the recipient can prove that fraud to the world by providing both transactions spending the same inputs. This proof is added to some sort of blacklist, centralized or decentralized, which later recipients can consult to determine if the fidelity bond is now invalidated.</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>Fidelity bonds can be used to make financial fraud unprofitable. For instance the original fidelity bond proposal<ref>[http://sourceforge.net/mailarchive/message.php?msg_id=29185108 Trusted identities]</ref> - called "Trusted identities" at that time - included the idea of using fidelity bonds to create decentralized [[Green address|green addresses]]. Someone wishing for their transactions to be accepted without confirmations would first purchase a fidelity bond of some value tied to their identity. Someone determining if they should accept a payment without confirmations can check that the bond was sufficiently expensive to make it unprofitable for the sender to commit fraud. If the sender does commit fraud by double-spending the payment, the recipient can prove that fraud to the world by providing both transactions spending the same inputs. This proof is added to some sort of blacklist, centralized or decentralized, which later recipients can consult to determine if the fidelity bond is now invalidated.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>== <del class="diffchange diffchange-inline">Temporary </del>Fidelity Bond ==</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>== <ins class="diffchange diffchange-inline">Time-Locked </ins>Fidelity Bond ==</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>A related concept which uses time-locked bitcoins to prove a sacrifice. The purchaser of the fidelity bond sends bitcoins to a time-locked address and can reveal the UTXO and redeemScript to prove the sacrifice. The thing being sacrificed here is time rather than money (although because of the time-value-of-money they are somewhat related). This idea may be particularly useful for creating a cost to deliberately DOS interactive protocols like [[CoinJoin|coinjoin]] or coinswap.</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>A related concept which uses time-locked bitcoins to prove a sacrifice. The purchaser of the fidelity bond sends bitcoins to a time-locked address and can reveal the UTXO and redeemScript to prove the sacrifice. The thing being sacrificed here is time rather than money (although because of the time-value-of-money they are somewhat related). This idea may be particularly useful for creating a cost to deliberately DOS interactive protocols like [[CoinJoin|coinjoin]] or coinswap.</div></td></tr>
</table>Belcherhttps://tests.bitcoin.it/w/index.php?title=Fidelity_bonds&diff=63827&oldid=prevBelcher: added "see also" with links to bip65 (op_cltv) and bip112 (op_csv)2017-08-10T20:19:49Z<p>added "see also" with links to bip65 (op_cltv) and bip112 (op_csv)</p>
<table class="diff diff-contentalign-left" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr style="vertical-align: top;" lang="en">
<td colspan="2" style="background-color: white; color:black; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: white; color:black; text-align: center;">Revision as of 20:19, 10 August 2017</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l49" >Line 49:</td>
<td colspan="2" class="diff-lineno">Line 49:</td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>Fidelity bonds can be used to make financial fraud unprofitable. For instance the original fidelity bond proposal<ref>[http://sourceforge.net/mailarchive/message.php?msg_id=29185108 Trusted identities]</ref> - called "Trusted identities" at that time - included the idea of using fidelity bonds to create decentralized [[Green address|green addresses]]. Someone wishing for their transactions to be accepted without confirmations would first purchase a fidelity bond of some value tied to their identity. Someone determining if they should accept a payment without confirmations can check that the bond was sufficiently expensive to make it unprofitable for the sender to commit fraud. If the sender does commit fraud by double-spending the payment, the recipient can prove that fraud to the world by providing both transactions spending the same inputs. This proof is added to some sort of blacklist, centralized or decentralized, which later recipients can consult to determine if the fidelity bond is now invalidated.</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>Fidelity bonds can be used to make financial fraud unprofitable. For instance the original fidelity bond proposal<ref>[http://sourceforge.net/mailarchive/message.php?msg_id=29185108 Trusted identities]</ref> - called "Trusted identities" at that time - included the idea of using fidelity bonds to create decentralized [[Green address|green addresses]]. Someone wishing for their transactions to be accepted without confirmations would first purchase a fidelity bond of some value tied to their identity. Someone determining if they should accept a payment without confirmations can check that the bond was sufficiently expensive to make it unprofitable for the sender to commit fraud. If the sender does commit fraud by double-spending the payment, the recipient can prove that fraud to the world by providing both transactions spending the same inputs. This proof is added to some sort of blacklist, centralized or decentralized, which later recipients can consult to determine if the fidelity bond is now invalidated.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>==Temporary Fidelity Bond==</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>== Temporary Fidelity Bond ==</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>A related concept which uses time-locked bitcoins to prove a sacrifice. The purchaser of the fidelity bond sends bitcoins to a time-locked address and can reveal the UTXO and redeemScript to prove the sacrifice. The thing being sacrificed here is time rather than money (although because of the time-value-of-money they are somewhat related). This idea may be particularly useful for creating a cost to deliberately DOS interactive protocols like [[CoinJoin|coinjoin]] or coinswap.</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>A related concept which uses time-locked bitcoins to prove a sacrifice. The purchaser of the fidelity bond sends bitcoins to a time-locked address and can reveal the UTXO and redeemScript to prove the sacrifice. The thing being sacrificed here is time rather than money (although because of the time-value-of-money they are somewhat related). This idea may be particularly useful for creating a cost to deliberately DOS interactive protocols like [[CoinJoin|coinjoin]] or coinswap.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The lock-time can be chosen to be far enough in the future to provide a suitable cost. Note that from the point of view of an investor of many bitcoins, they can purchase bonds for nearly-free because they intend to hold their bitcoins for a very long time anyway. Although presumably a long-term bitcoin investor won't want to DOS coinjoin protocols that make bitcoin more private and fungible, as that would hurt the value of their own investment coins.</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The lock-time can be chosen to be far enough in the future to provide a suitable cost. Note that from the point of view of an investor of many bitcoins, they can purchase bonds for nearly-free because they intend to hold their bitcoins for a very long time anyway. Although presumably a long-term bitcoin investor won't want to DOS coinjoin protocols that make bitcoin more private and fungible, as that would hurt the value of their own investment coins.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">== See also ==</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">* [[BIP 0065]] and [[BIP 0112]]. BIPs describing the opcodes used to make time-locked addresses</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== References ==</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== References ==</div></td></tr>
</table>Belcherhttps://tests.bitcoin.it/w/index.php?title=Fidelity_bonds&diff=63825&oldid=prevBelcher: added "Temporary Fidelity Bond" section and added article to Technical catagory2017-08-10T20:15:10Z<p>added "Temporary Fidelity Bond" section and added article to Technical catagory</p>
<table class="diff diff-contentalign-left" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr style="vertical-align: top;" lang="en">
<td colspan="2" style="background-color: white; color:black; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: white; color:black; text-align: center;">Revision as of 20:15, 10 August 2017</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l48" >Line 48:</td>
<td colspan="2" class="diff-lineno">Line 48:</td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>Fidelity bonds can be used to make financial fraud unprofitable. For instance the original fidelity bond proposal<ref>[http://sourceforge.net/mailarchive/message.php?msg_id=29185108 Trusted identities]</ref> - called "Trusted identities" at that time - included the idea of using fidelity bonds to create decentralized [[Green address|green addresses]]. Someone wishing for their transactions to be accepted without confirmations would first purchase a fidelity bond of some value tied to their identity. Someone determining if they should accept a payment without confirmations can check that the bond was sufficiently expensive to make it unprofitable for the sender to commit fraud. If the sender does commit fraud by double-spending the payment, the recipient can prove that fraud to the world by providing both transactions spending the same inputs. This proof is added to some sort of blacklist, centralized or decentralized, which later recipients can consult to determine if the fidelity bond is now invalidated.</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>Fidelity bonds can be used to make financial fraud unprofitable. For instance the original fidelity bond proposal<ref>[http://sourceforge.net/mailarchive/message.php?msg_id=29185108 Trusted identities]</ref> - called "Trusted identities" at that time - included the idea of using fidelity bonds to create decentralized [[Green address|green addresses]]. Someone wishing for their transactions to be accepted without confirmations would first purchase a fidelity bond of some value tied to their identity. Someone determining if they should accept a payment without confirmations can check that the bond was sufficiently expensive to make it unprofitable for the sender to commit fraud. If the sender does commit fraud by double-spending the payment, the recipient can prove that fraud to the world by providing both transactions spending the same inputs. This proof is added to some sort of blacklist, centralized or decentralized, which later recipients can consult to determine if the fidelity bond is now invalidated.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">==Temporary Fidelity Bond==</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">A related concept which uses time-locked bitcoins to prove a sacrifice. The purchaser of the fidelity bond sends bitcoins to a time-locked address and can reveal the UTXO and redeemScript to prove the sacrifice. The thing being sacrificed here is time rather than money (although because of the time-value-of-money they are somewhat related). This idea may be particularly useful for creating a cost to deliberately DOS interactive protocols like [[CoinJoin|coinjoin]] or coinswap.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">The lock-time can be chosen to be far enough in the future to provide a suitable cost. Note that from the point of view of an investor of many bitcoins, they can purchase bonds for nearly-free because they intend to hold their bitcoins for a very long time anyway. Although presumably a long-term bitcoin investor won't want to DOS coinjoin protocols that make bitcoin more private and fungible, as that would hurt the value of their own investment coins.</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== References ==</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== References ==</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div><references/></div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div><references/></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">[[Category:Technical]]</ins></div></td></tr>
</table>Belcherhttps://tests.bitcoin.it/w/index.php?title=Fidelity_bonds&diff=39785&oldid=prevPetertodd: /* Financial Services */ history2013-07-25T18:05:02Z<p><span dir="auto"><span class="autocomment">Financial Services: </span> history</span></p>
<table class="diff diff-contentalign-left" data-mw="interface">
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<td colspan="2" style="background-color: white; color:black; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: white; color:black; text-align: center;">Revision as of 18:05, 25 July 2013</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l47" >Line 47:</td>
<td colspan="2" class="diff-lineno">Line 47:</td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Financial Services ==</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Financial Services ==</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Fidelity bonds can be used to make financial fraud unprofitable. For instance <del class="diffchange diffchange-inline">one early </del>proposal<ref>[http://sourceforge.net/mailarchive/message.php?msg_id=29185108 Trusted identities]</ref> <del class="diffchange diffchange-inline">was to use fidelity bonds </del>- called "Trusted identities" <del class="diffchange diffchange-inline">by </del>the <del class="diffchange diffchange-inline">proposal's author - </del>to create decentralized [[Green address|green addresses]]. Someone wishing for their transactions to be accepted without confirmations would first purchase a fidelity bond of some value tied to their identity. Someone determining if they should accept a payment without confirmations can check that the bond was sufficiently expensive to make it unprofitable for the sender to commit fraud. If the sender does commit fraud by double-spending the payment, the recipient can prove that fraud to the world by providing both transactions spending the same inputs. This proof is added to some sort of blacklist, centralized or decentralized, which later recipients can consult to determine if the fidelity bond is now invalidated.</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Fidelity bonds can be used to make financial fraud unprofitable. For instance <ins class="diffchange diffchange-inline">the original fidelity bond </ins>proposal<ref>[http://sourceforge.net/mailarchive/message.php?msg_id=29185108 Trusted identities]</ref> - called "Trusted identities" <ins class="diffchange diffchange-inline">at that time - included </ins>the <ins class="diffchange diffchange-inline">idea of using fidelity bonds </ins>to create decentralized [[Green address|green addresses]]. Someone wishing for their transactions to be accepted without confirmations would first purchase a fidelity bond of some value tied to their identity. Someone determining if they should accept a payment without confirmations can check that the bond was sufficiently expensive to make it unprofitable for the sender to commit fraud. If the sender does commit fraud by double-spending the payment, the recipient can prove that fraud to the world by providing both transactions spending the same inputs. This proof is added to some sort of blacklist, centralized or decentralized, which later recipients can consult to determine if the fidelity bond is now invalidated.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== References ==</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== References ==</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div><references/></div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div><references/></div></td></tr>
</table>Petertoddhttps://tests.bitcoin.it/w/index.php?title=Fidelity_bonds&diff=39784&oldid=prevPetertodd: /* Financial Services */ spelling2013-07-25T18:03:02Z<p><span dir="auto"><span class="autocomment">Financial Services: </span> spelling</span></p>
<table class="diff diff-contentalign-left" data-mw="interface">
<col class="diff-marker" />
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<tr style="vertical-align: top;" lang="en">
<td colspan="2" style="background-color: white; color:black; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: white; color:black; text-align: center;">Revision as of 18:03, 25 July 2013</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l47" >Line 47:</td>
<td colspan="2" class="diff-lineno">Line 47:</td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Financial Services ==</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Financial Services ==</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Fidelity bonds can be used to make financial fraud unprofitable. For instance one early proposal<ref>[http://sourceforge.net/mailarchive/message.php?msg_id=29185108 Trusted identities]</ref> was to use fidelity bonds - called "Trusted identities" by the proposal's author - to create decentralized [[Green address|green addresses]]. Someone wishing for their transactions to be accepted without confirmations would first purchase a fidelity bond of some value tied to their identity. Someone determining if they should accept a payment without confirmations can check that the bond was sufficiently expensive to make it unprofitable for the sender to commit fraud. If the sender does commit fraud by double-spending the payment, the recipient can prove that fraud to the world by providing both transactions spending the same inputs. This proof is added to some sort of <del class="diffchange diffchange-inline">blacklisted</del>, centralized or decentralized, which later recipients can consult to determine if the fidelity bond is now invalidated.</div></td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Fidelity bonds can be used to make financial fraud unprofitable. For instance one early proposal<ref>[http://sourceforge.net/mailarchive/message.php?msg_id=29185108 Trusted identities]</ref> was to use fidelity bonds - called "Trusted identities" by the proposal's author - to create decentralized [[Green address|green addresses]]. Someone wishing for their transactions to be accepted without confirmations would first purchase a fidelity bond of some value tied to their identity. Someone determining if they should accept a payment without confirmations can check that the bond was sufficiently expensive to make it unprofitable for the sender to commit fraud. If the sender does commit fraud by double-spending the payment, the recipient can prove that fraud to the world by providing both transactions spending the same inputs. This proof is added to some sort of <ins class="diffchange diffchange-inline">blacklist</ins>, centralized or decentralized, which later recipients can consult to determine if the fidelity bond is now invalidated.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== References ==</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== References ==</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div><references/></div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div><references/></div></td></tr>
</table>Petertoddhttps://tests.bitcoin.it/w/index.php?title=Fidelity_bonds&diff=39783&oldid=prevPetertodd: /* Coinbase TxOut Sacrifices */ note problems with midstate compression2013-07-25T17:46:10Z<p><span dir="auto"><span class="autocomment">Coinbase TxOut Sacrifices: </span> note problems with midstate compression</span></p>
<table class="diff diff-contentalign-left" data-mw="interface">
<col class="diff-marker" />
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<tr style="vertical-align: top;" lang="en">
<td colspan="2" style="background-color: white; color:black; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: white; color:black; text-align: center;">Revision as of 17:46, 25 July 2013</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l28" >Line 28:</td>
<td colspan="2" class="diff-lineno">Line 28:</td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>Coinbase transactions are unique in that they can't be spent for 100 blocks, thus solving the problem of proving a transaction output was made public prior to it being possible to spend that output in a single transaction. In addition coinbase transactions can be created anonymously without linking the transaction to any other transaction provided that the creator has the ability to mine anonymously. (or have someone else do so on their behalf)</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>Coinbase transactions are unique in that they can't be spent for 100 blocks, thus solving the problem of proving a transaction output was made public prior to it being possible to spend that output in a single transaction. In addition coinbase transactions can be created anonymously without linking the transaction to any other transaction provided that the creator has the ability to mine anonymously. (or have someone else do so on their behalf)</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">A proof for a coinbase txout is particularly short if the txout is the last txout and the script is meant to be unspendable. SHA256 midstate compression can then be used to prove the committed digest, and that the last opcode was OP_RETURN; it is not possible for a script to return true unless without the last opcode being executed. Fortunately the anyone-can-spend version can-not be proven so easily - consider the following txout fragment:</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"> <SHA256 midstate> <scriptPubKey length> <digest> <nLockTime></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">The problem is the fragment could actually be part of this scriptPubkey:</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"> <pubkey> OP_CHECKSIGVERIFY OP_PUSHDATA (<scriptPubKey length> <digest>)</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">In reality this isn't a true sacrifice. The only way around this problem is if the proven data is greater than the maximum pushdata length allowed, 520 bytes, which undesirably depends on a constant whose value may be changed in a future hard-fork.</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Passports ==</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Passports ==</div></td></tr>
</table>Petertoddhttps://tests.bitcoin.it/w/index.php?title=Fidelity_bonds&diff=39781&oldid=prevPetertodd: Add Coinbase TxOut Sacrifice2013-07-25T17:11:06Z<p>Add Coinbase TxOut Sacrifice</p>
<table class="diff diff-contentalign-left" data-mw="interface">
<col class="diff-marker" />
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<col class="diff-marker" />
<col class="diff-content" />
<tr style="vertical-align: top;" lang="en">
<td colspan="2" style="background-color: white; color:black; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: white; color:black; text-align: center;">Revision as of 17:11, 25 July 2013</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l24" >Line 24:</td>
<td colspan="2" class="diff-lineno">Line 24:</td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The proof of the sacrifice is then two transactions: the proof the announcement transaction exists in the chain, and the proof that the inner sacrifice exists in the chain. (possibly with proof of the inner sacrifice inputs to prove what fees were actually paid)</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>The proof of the sacrifice is then two transactions: the proof the announcement transaction exists in the chain, and the proof that the inner sacrifice exists in the chain. (possibly with proof of the inner sacrifice inputs to prove what fees were actually paid)</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">=== Coinbase TxOut Sacrifices ===</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="color:black; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Coinbase transactions are unique in that they can't be spent for 100 blocks, thus solving the problem of proving a transaction output was made public prior to it being possible to spend that output in a single transaction. In addition coinbase transactions can be created anonymously without linking the transaction to any other transaction provided that the creator has the ability to mine anonymously. (or have someone else do so on their behalf)</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"></td></tr>
<tr><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Passports ==</div></td><td class='diff-marker'> </td><td style="background-color: #f9f9f9; color: #333333; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #e6e6e6; vertical-align: top; white-space: pre-wrap;"><div>== Passports ==</div></td></tr>
</table>Petertodd